[Q 153] Working in partnership

Question

Zaid and Kashif both desire to do partnership. Both will contribute equal amount and Zaid alone will work, not Kashif.

So how will the profit and the loss be decided, if Zaid alone will work?

So can his share in profit be kept higher for this reason?

بسم الله الرحمن الرحيم

الجواب بعون الملك الوهاب اللهم هداية الحق والصواب

Answer

In the asked case, the partnership of Zaid and Kashif is in such a manner that the wealth of both is equal and Zaid alone will work. So this way is completely permissible.

It is also permissible to give the partner who’s working excess profit, in terms of percentage, on top of the capital.

However, it is not permissible to set profit more than the capital for a person who is not working.

The details in this is that in a partnership based business, it is necessary to share the profit based on percentage.

However, both the parties have the option to share the profit on the basis of capital by mutual consent or give more profit to the person who is working, but it is not permissible to give more profit to the one who is not working than the share of capital.

And as for the loss, whatever loss will happen, it is necessary to distribute it to both partners according to their capital, that is, the loss will be imposed in accordance to how much capital is invested.

Answered by: Mufti Sajid Attari

Translated by: Usman Bashir Attari

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